Closed my June $17.50 puts on AFSI for $0.15.
After I sold these puts, I put in a buy-to-close order to sell as soon as I'd made 80% of my potential profits. This is my SOP when selling puts.
Remember, I sold these puts on January 20 for $0.90.
The term of the put was six months. Holding to expiration would have paid me 5.14%, or 0.86% per month. [ $0.90/$17.50 * 100 = 5.14% 5.14%/6 months = 0.86% per month ]
I bought the put back early, having made 80% of my potential profit. The effective term was four months. My profit was $0.75 or 4.29% total or 1.07% per month [ $0.90 - 0.15 = $0.75. $0.75/$17.5 *100 = 4.29% 4.29%/4 months = 1.07% per month ]
So by closing early, I made 0.21% per month more than I would if I had just held the out-of-the-money puts to expiration.
0.21% per month isn't much, but it's 2.52% annualized--more than my bank account is paying right now.
Showing posts with label AFSI. Show all posts
Showing posts with label AFSI. Show all posts
Friday, April 29, 2011
Friday, August 13, 2010
Sold EBIX, ORCL, AFSI
Today I sold EBIX for $17.57, ORCL for $22.64, and AFSI for $13.86. AFSI was sold on valuation; I'll buy again if it goes lower. EBIX was sold for a 10% loss; I think the current price increase (due to a great earnings report) will recede. I'll look to pick it up again at a lower price. ORCL was sold for a gain; I sold it due to management reliability concerns.
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